Casino, not bakery: Philippine e-payment firms urged to improve merchant vetting
Electronic payment providers need to be more diligent in vetting companies that use their platforms to protect people from fraud, the Philippine central bank said. The requirement came after Bangko Sentral ng Pilipinas found thousands of illegal businesses on the payment platforms, including many online casinos masquerading as more ordinary companies like beauty salons and bakeries. “We want to…
The Philippine central bank has urged electronic payment providers to improve their merchant vetting processes to prevent fraud, illegal activities, and money laundering on their platforms. The concern arose after the bank found thousands of illegal businesses, including online casinos disguised as legitimate companies like beauty salons and bakeries.
Deputy Governor Mamerto Tangonan emphasized the need to protect consumers from online fraud and money thieves during an interview. The central bank released a draft document, placing the responsibility on payment service providers to enhance the screening of merchants they partner with. Anomalies, such as small payments during late hours, were linked to online casinos, with over 8,000 merchants now having their accounts closed due to alleged illegal activities.
Philippine Amusement and Gaming Corporation Chairman Alejandro Tengco acknowledged that many legitimate businesses were being used by these illegal casinos and that their organization was collaborating with the central bank. The central bank will now require payment platforms to gather more information on merchants, including owner details and licenses, and establish databases of legitimate merchants.
Repeated violations could result in the revocation of payment licenses. The EMoney Association of the Philippines supports the central bank's initiatives to strengthen the integrity and safety of the digital payments ecosystem, emphasizing the importance of accountability within the industry.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
